b. Eliminate the capital expenditures shown in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. c. Depreciation expense (governmental activities) for the year totaled 56 l6,590,000. d. Eliminate the other financing sources from the sale of bonds by recording a liability for bonds payable and the related premium. e. As of January 1, 2014, the City of Monroe had $12,000,000 in general obligation bonds outstanding. f. Eliminate the expenditures for bond principal. g. Accrue interest in the amount of $328,000. (Two bond issues were outstanding; interest payments for both were last made on July 1, 2014. The computation is as follows: ($11,200,000 X .03 X 5K12) + ($4,000,000 X. 08 X 6112) = $328,000). h. Adjust for the interest accrued in the prior year governmentwide statements, but recorded as an expenditure in the 2014 fund basis statements, ($12,000,000 X . 03 X 6x12) = $180,000. 1'. Amortize bond premium in the amount of $6,000. j. Make adjustments for additional revenue accrual. The only adjustment is for property taxes to eliminate the current year deferral of property taxes. k. Adjust for the $19,000 of property taxes that was deferred in 2013 and recognized as revenue in the 2014 fund-basis statements. 1. Assume the City adopted a policy in 2014 of allowing employees to accumulate compensated absences. Make an adjustment accruing the expense of $ 38,000 Charge compensated absences expense. m. Bring in the balances of the internal service fund balance sheet accounts. Again, use a single accormt for all capital assets and a second account for all accumulated depreciation balances (use a separate column of the worksheet to enter Internal Service thd entries). H. No revenues from internal service funds were with external parties. Assume $13,200 of the $21,200 \"Due from Other Funds\" in the internal service accounts represents a receivable from the General Fund and the remaining $8,000 is due from the enterprise fund. Eliminate the $13,200 interftmd receivables. 0. Reduce governmental ftmd expenses by the net operating profit of internal service ftmds. As the amount is small, reduce general government expenses for the entire amount. p. Eliminate transfers that are between deparnnents reported within governmental activities. 3. Prepare, in good form, a Statement of Activities for the City of Monroe for the Year Ended December 31, 2014. For purposes of this statement, assume: I $ 312,000 in the General Fund is a state grant specifically to support general government programs. I $ 1,085,000 in the Street and Highway Fund is an operating grant specifically for highway and street maintenance expenses. I $ 1,000,000 in the City Jail Construction Fund is a capital grant that applies to public safety